Type: Short term care plan for the over 50s following a hospital stay
Levels of cover: Seven-day cover, 14-day cover, 21-day cover
Minimum-maximum premium: £85-£280 a year
Maximum benefits: 75% of eligible fees up to £300 a day for personal care at home, domestic help and home nursing
Excess: 25% of any claim
Deferred period: None
Commission: Initial 25%, renewal 5%
Tel: 0800 0111131
Parent Care is a short-term care plan aimed at meeting the cost of care in the home after an elderly person has been in hospital.
Independent Personal Financial Management director Luke Gibbon is not aware of any other product that could complete with this. He says: “Any care agency can be used but WPA obviously has a relationship with Allied and this could smooth the whole process.”
Gibbon believes the policy could save relatives time in sourcing appropriate care and could also be the difference between an elderly person being looked after in their own home rather than a residential or nursing home. He also feels the product is reasonably priced. “The cost of the cover is reasonable in that it costs £130 a year for up to seven days’ fees for a person aged 70-79, £205 for 14 days’ cover and £280 for 21 days’ cover,” he says.
While Gibbon thinks the intention of the plan is good, there are a number of reasons why he suspects uptake will be limited among IFAs. He says: “First, the cover will only pay 75 per cent of the costs of care or a maximum of 21 days. While in theory the maximum benefit is £1,575 a week, the cost of residential homes, while expensive, is significantly less.” Gibbon also thinks that generally people do not think abut residential care, whether in their own home or elsewhere, until it is needed.
He also points out that hospitals will not allow elderly patients to go home until they are satisfied appropriate care is in place. “Consequently, there will always be provision for the elderly even if it is not necessarily what they would choose. I think that those who could afford the plan are likely to simply make provision if and when the time comes that care is needed. Those who cannot afford it will simply rely on the state system,” says Gibbon.
Gibbon concludes that the literature is extensive and not easy to understand. “I would have thought that it could have been condensed to half its size and been more focused,” he says.
Suitability to market: Average
Premium rate: Average